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sweet [91]
3 years ago
8

On February 15, Jewel Company buys 7,300 shares of Marcelo Corp. common stock at $28.56 per share plus a brokerage fee of $400.

The stock is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.18 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.33 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:______.A) Debit Cash $8,614; credit Dividend Revenue $8,614.B) Debit Cash $8,614; credit Interest Revenue $8,614.C) Debit Cash $8,614; credit Gain on Sale of Investments $8,614.D) Debit Cash $7,865; credit Dividend Revenue $7,865.E) Debit Cash $7,865; credit Interest Revenue $7,865.
Business
1 answer:
andriy [413]3 years ago
4 0

Answer:

A. Debit Cash $8,614; credit Dividend Revenue $8,614.

Explanation:

The journal entry for recording the dividend as on April 15 is shown below:

On April 15

Cash Dr (7,300 shares × $1.18 per share) $8,614

       To Dividend revenue $8,614

(Being the dividend is recorded)

For recording this here we debited the cash as it increased the assets and credited the dividend revenue as the revenue is also increased

Therefore the correct option is A.

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Operating assets include cash, accounts receivable, and inventory but not any depreciable fixed assets.
IgorLugansk [536]
That statement is false.

WHAT ARE "OPERATING ASSETS"?
Operating assets are assets acquired for use of the ongoing operations of a business. 

OPERATING ASSETS INCLUDE:
Inventory, accounts receivable, & fixed assets.

WHY IS IT FALSE?
This statement would've been correct up until this point: "but not any depreciable fixed assets."
8 0
3 years ago
Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's research and development divisio
Reptile [31]

Answer:

Option A; INCREASED COMPETITION FROM IMITATORS.

Explanation:

Innovation occurs only when something is entirely new, having never been done before. Innovation also exist when something which may have been done elsewhere is done for the first time in a given industry.

On the other hand, when other competitors in the same industry subsequently copy the innovator, even though it is something new for them, then it is imitation.

When a company comes out with a new product, its competitors typically go on the defensive, doing whatever they can to reduce the odds that the offering will eat into their sales. Responses might include: cranking up marketing efforts, offering discounts to channel partners and even lobbying for regulations that would hinder the rival's expansion.

Therefore, Lilypad's managers should prepare for INCREASED COMPETITION FROM IMITATORS next.

7 0
2 years ago
Which position describes karl marx’s view of religion and society?
PtichkaEL [24]
The position that describes Karl Marx's view of religion and society is his power with the connection to religion. Karl Marx as one of the most influential people in the history for he implemented various revolutionary actions which were condemned and criticized.
5 0
3 years ago
The XYZ Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $18.00,
stellarik [79]

Answer:

current intrinsic value per stock = $26.35

Explanation:

year                      dividend              EPS

0                              0                       $18

1                               0                       $20.88

2                              0                       $24.22

3                              0                       $28.10

4                              0                       $32.59

5                              0                       $37.81

6                              $12.59              $41.97

growth rate up to year 5 = 16%

ROE growth rate starting year 6 = 11%

dividend growth rate starting year 6 = 11% x (1 - 30%) = 7.7%

cost of equity = 24%

horizon value at year 5 = $12.59 / (24% - 7.7%) = $77.24

current intrinsic value per stock = $77.24 / 1.24%⁵ = $26.35

4 0
2 years ago
oas on a callable bond is 75 basis points using on-the-run treasuries as benchmark rates. which is correct?
Rina8888 [55]

The correct statement is option C. OAS reflects the credit risk and liquidity risk of the bond over the treasury benchmark rates. Read below about a callable bond.

<h3>What is a callable bond?</h3>

A callable bond is a type of bond that permits the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. Consequently, the said point which is basis is 75.

Therefore, the correct answer is option C. OAS reflects the credit risk and liquidity risk of the bond over the treasury benchmark rates.

learn more about callable bond: brainly.com/question/24129882

#SPJ11

4 0
1 year ago
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